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Xstrata Plc announces Preliminary Results for year ended 31 December 2009 (PDF)
Zug, 8 February 2010
Key Financial Results
| $m |
Year ended 31.12.09 |
Year ended 31.12.08 |
% Change |
|
|---|---|---|---|---|
| Revenue† | 23,530 | 27,952 | (16) | |
| Operating EBITDA*† | 7,046 | 9,645 | (27) | |
| Operating profit*† | 4,476 | 7,249 | (38) | |
| EBIT* | 4,313 | 7,261 | (41) | |
| Attributable profit* | 2,773 | 4,698 | (41) | |
| Earnings per share (basic)* ‡ | $1.05 | $2.77 | (62) | |
| Dividends proposed per share | 8¢ | - | - | |
| Net debt to net debt plus equity | 26% | 40% | (35) | |
| Net assets | 34,919 | 24,399 | 43 | |
| Net assets per share**‡ | $12.04 | $14.44 | (17) | |
* Excludes exceptional items
** Excluding own shares
† Includes Prodeco for 2009 (refer to note10 of the Consolidated Financial Statements and the Supplementary Information)
‡ 2008 restated after applying a rights issue bonus factor of 0.57
Highlights
- Operating EBITDA of $7 billion despite unprecedented destocking in the first half and lower demand and average prices in 2009 as a result of the global downturn
- Rapid and comprehensive response to the downturn delivered real cost savings of $501 million, representing a 5% reduction in the operating cost base
- Accelerated transformation of Xstrata Nickel operations and restructuring and expansion of Xstrata Zinc’s Australian operations reduced average C1 nickel and zinc costs by 33% and 25% respectively
- Operational cash flow of over $5.3 billion, with stronger second half cash generation of $3.7 billion
- Dividend of 8 cents per share proposed for payment in May 2010, reflecting the Board’s confidence in Xstrata’s near and medium term prospects and financial position
- Gearing reduced to 26% from 40%, as a result of robust cash flows and a successful rights issue in the first quarter to repay a net $3.7 billion of debt
- Over $8 billion of projects currently in construction, with a further $9 billion of projects due to be approved in 2010, providing Xstrata with significant volume growth to benefit from continued robust demand from Asian and other industrialising economies
Mick Davis, Xstrata plc Chief Executive Officer commented:
“Our businesses’ rapid and comprehensive response to the downturn in the early part of the year enabled a creditable result in extremely challenging markets in 2009. It has been matched by a swift resumption of investment in key growth projects that will drive substantial volume growth and reductions in operating costs, marking the next stage of Xstrata’s transformation.
“In my opinion, the medium term outlook for commodity demand remains very promising, driven by the ongoing urbanisation and industrialisation of high-growth, populous economies, with China and other industrialising countries taking active steps to rebalance their economies towards domestic consumption-led growth over the next decade. There are a number of risks that must be carefully managed on the path to a sustainable OECD recovery. However, many of the short- and medium-term leading indicators we monitor are showing signs of recovery, notwithstanding the fact that credit expansion in OECD economies remains sluggish. In time, the return to a more normalised level of growth of OECD economies will add further impetus to the growth of the global economy and commodity demand.
“Against this background, the shift of emphasis in Xstrata’s strategy to a phase more dominated by organic growth is timely and coincides with our view that the supply of many commodities will struggle to keep pace with demand growth.
“Xstrata has been well positioned over the last few years to benefit in this environment. The investments of recent years have delivered a diversified portfolio with the scale and capabilities to develop major new mines. As we enter into this next phase of Xstrata’s transformation, I am confident that the Group’s prospects remain very encouraging.”
The full preliminary results announcement is available for download in PDF format.
Ends
Xstrata contacts
Claire Divver
Telephone +44 20 7968 2871
Mobile +44 7785 964 340
Email cdivver@xstrata.com
Pam Bell
Telephone +44 20 7968 2822
Mobile +44 7799 626 715
Email pbell@xstrata.com
Brigitte Mattenberger
Telephone +41 41 726 6071
Mobile +41 79 381 1823
Email bmattenberger@xstrata.com
Michael Oke
Aura Financial
Telephone +44 20 7321 0033
Mobile +44 7834 368 299
Email michael@aura-financial.com